Members of Parliament (MPs) have criticised the National Agricultural Advisory Services (NAADS) for violating the procurement law when it directly procured Horyal Company Limited to support Atiak sugar cane factory. The MPs on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) learned that the agricultural body paid Horyal Company Limited Shs15 billion to clear 15,000 acres of bush land in Lamwo district for sugar cane growing. This was during a meeting with the NAADS Secretariat led by the Executive Director, Samuel Mugasi on Wednesday, 09 August 2023. The committee is scrutinising the report of the Auditor General on financial statements of NAADS for Financial Year 2021/2022. Eunice Katto, the NAADS Head of Procurement told the committee that Horyal was directly procured because it was A rainy season and yet the open bidding process is lengthy and time consuming. “There was also a Memorandum of Understanding between Horyal and the women groups to provide labour,” Katto added. The Committee’s lead counsel, Hon. Ronald Ndyomugenyi (Indep. Rukiga County) however, said that Katto’s justification did not suffice and violates the Public Procurement and Disposal of Public Assets Act, which requires bidding for a contract of such magnitude. “Are those the reasons you can give for a direct procurement? What are the conditions in the PPDA Act for direct procurements?” Ndyomugenyi asked. Hon. Bumali Mpindi (Indep., PWD) wondered why bush clearing qualified for direct procurement adding that Shs15 billion is too high for the said activity. “What kind of bush clearing is this? is it different from others? Why didn’t you subject it to bidding to allow other companies to participate? Your justification for direct procurement is lacking,” he said. This prompted the NAADS ED, Mugasi to reveal that the decision was made following a letter from the Minister of Finance, Planning and Economic Development directing the Agricultural body to undertake a direct procurement. “The first letter was from the Prime Minister requesting us to work with Horyal and then another one in 2018, which talks about financing of sugar cane project,” he said. In this letter, Mugasi said that the Minister of Finance instructed NAADS to enter into a contract with Horyal and provide funds to complete the sugar cane out growers scheme. Government is a minority shareholder in Atiak Sugar factory with 40 percent shares. Source; Parliament of Uganda
GOV’T JUSTIFIES COST OF DIGITAL NUMBER PLATES
The cost of the new number plates that are expected to be rolled out later in the year were a result of a financial model used for their pricing. . The Minister for Security, Hon. Jim Muhwezi made the revelation while appearing before the Committee on Physical Infrastructure on Tuesday, 08 August 2023. Muhwezi, said the Ministry of Finance participated in the financial model that dictated the price of the new digital number plates.“Government is not putting a shilling in this project but the investor is putting all his money in it and he has to recover it,” he said. Muhwezi and the Works and Transport Minister, Gen. Katumba Wamala were before the committee chaired by Hon. Dan Atwijukire. The committee is considering a petition by Tororo District Woman Representative, Hon. Sarah Opendi on the high cost of the new number plates. New vehicle and motorcycle owners will be pay shs714,000 for the the digital number plates while already registered road users will be required to pay shs150,000 and shs50,000 for vehicles and motorcycles. The Intelligent Transport Monitoring System (ITMS) is to be implemented in a phased manner and will be managed by Joint Stock Company Global Security for 10 years, before it is handed over to government. Muhwezi also revealed that the project will commence its rollout on 31 October 2023.“We shall begin with Kampala and because that is where most of the vehicles are and it is where most of the crime is committed. We shall rollout out to the rest of the country in a phased manner,” the minister added. According to Winston Katushabe, the Commissioner for Transport Regulation and Safety at the Ministry of Works and Transport, government will receive a share of the non-tax revenue generated over the 10-year period. He added that a financial model covering the total investment of the Intelligent Transport Monitoring System, including selling number plates and traffic fines, informed the pricing of the new digital number plates.“Even when it was not a security issue, government had already started initiating a new regime of replacing these number plates. Here we have a total solution where the number plate has a tracker for security purposes,” said Katushabe. Opendi said the cost of the new digital number plates is prohibitive to road users. “Why are we not using Ugandan companies that are already printing number plates? I am aware that these number plates will be imported and maybe that is why they are so costly,” said Opendi. Hon. Patrick Oshabe (NUP, Kassanda County North) reiterated that the cost of the digital plates is too high for ordinary Ugandans.“I do not know why the ministry does not take into consideration that the people they are bringing the technology to, cannot afford it. If I already have a number plate, why charge me shs50,000? Leave Ugandans and just replace the number plates” said Oshabe. Hon. Atwijukire tasked the ministers to present documentation showing the process of generating the charge for the digital number plates.“The cost of a motorcycle is about shs5 million and if one pays for it on a loan period of about three years, it brings the total to about shs8 million. If you add the cost of the digital plate, it will cover 20 per cent of such a cost which is too high,” said Atwijukire. Hon. Nathan Byanyima (NRM, Bukanga North County) expressed reservations about how government will benefit from the non-tax revenue to be generated after the project has been rolled out. Susan Kataike, the Head of Communications at the Ministry of Works and Transport said they are implementing a communication strategy to sensitize stakeholders and the public on the rollout of the Intelligent Transport Monitoring System and what it entails. Source; Parliament of Uganda
UGANDA WILL DEVELOP WITHOUT WORLD BANK – MUSEVENI
President Museveni has insisted that Uganda will do with or without the support of the World Bank. In a message on his Twitter handle, Museveni said that an “official from the World Bank rang me to alert me about the statement from that Bank regarding the suspension of any new requests from Uganda for loans.” “I want to inform everybody, starting with Ugandans, that Uganda will develop with or without loans,” he stressed. He claims that in the past, many loans were authorised by officials behind his back, when completely unnecessary. Many of the loans in the past were carelessly entered into by officials behind my back when they were completely unnecessary. “That is why some years ago, I put down my foot and forbade agreeing to any loan before my approval. Hence, we are now borrowing less and cautiously. Yet our economy is growing, other global challenges such as the war in Europe, corona, etc., notwithstanding,” he said. “If there is an absolute need for borrowing, there are a number of non-Bretton Woods sources from where we can borrow,” he added. The president said he was banking on Uganda to start producing oil in 2025 such that the country is able to finance its economic activities. “With discipline, patriotism and combating corruption, we shall thrive because our agriculture is there, our industries are growing and our services sector is expanding,” he said. Castigates World Bank over homos The President vowed that the world bank and other factors will not coerce Ugandans into abandoning their faith, culture, principles and sovereignty, using money. “They really underestimate all Africans.” “I have patiently explained to some of the actors that merely being a homosexual is not targeted by this law. It is going from being a homosexual to recruit or coerce others into your deviance, that is targeted by the law.” He said the country is willing to address any residual illogicalities in the law. “We do not need pressure from anybody to know how to solve problems in our society. They are our problems. We are continuing to talk to with the World Bank so that both they and we avoid this diversion if possible,” he added. The World Bank has announced it will halt new loans to Uganda over the country’s controversial anti-LGBTQ law. The Washington, DC-based lender said on Tuesday it would pause project financing pending a review of measures it introduced to protect sexual and gender minorities from discrimination and exclusion in its projects. Source; Nile Post
LOTTERIES BOARD OFFICIALS BLAME EACH OTHER OVER PROCUREMENTS
The National Lotteries and Gaming Regulatory Board (NLGRB) is under scrutiny over the manner in which contracts were awarded at the body. Ronald Kimanje, a Records Officer at NLGRB told the Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises that he resigned from a contracts committee due interference from his superiors. While appearing before the committee on Thursday, 03 August 2023, Kimanje blamed the Ag.CEO Denis Ngabirano for putting him under constant pressure and also blamed him for delayed procurements. Kimanje said that some procurements were delayed due to limited sittings by the contracts committee which he attributed to lack of quorum.“The one time we made quorum, I offered to be the committee secretary. When writing the minutes, we noted that certain documents were needed to fulfill a procurement. The CEO asked for the minutes but I could not avail them because they had not been approved by the committee,” Kimanje said.333 Kimanje (L) said that there was a delay in awarding contracts due to lack of quorum He said he received reports from workmates that he had been blamed for affecting the progress of contracts.“People undermine corridor talk but they give you a lot of information. I saw that the constant probing about my presence on the committee as interference. That is why I resigned,” Kimanje added. Committee Chairperson, Hon. Joel Ssenyonyi tasked Ngabirano to defend himself against the allegations made about him. Ngabirano said he continually pressured the contracts committee over their delays in holding sittings to consider procurements. He added that he wrote a letter asking Kimanje explain the delays.“It had nothing to do with me interfering or trying to influence the approval of any company. My response to his [Kimanje] letter was to substantiate. As per PPDA laws, I am entirely responsible for the procurement process,” Ngabirano said. Ngabirano (C) said the officer was blackmailing him He cited the allegations on him as blackmail.“This is blackmail from the officer because I gave a response to his letter that has never been replied,” Ngabirano added. Deborah Kituyi, the Head of Legal Affairs at the National Lotteries and Gaming Regulatory Board said that the delay in awarding contracts was attributed to limited committee sittings. She attributed the absence of committee members for meetings to other responsibilities like field duties.“The CEO has never instructed us to award a contract to a particular service provider. What happened was the delay in processing the minutes of the Committee as Kimanje has pointed out,” she said. Source; Parliament of Uganda
IMPROVING PASTORAL COMMUNITIES’ ENGAGEMENT IN DECISION-MAKING PROCESSES IN MINERAL RESOURCE GOVERNANCE
Strengthening the participation of indigenous pastoral communities in decisionmaking in mineral resource governance and equitable benefits sharing in mineralextractive industry in Karamoja Sub-Region. AFLI secured funds from USAID/EWMI Uganda Civil Society Strengthening Activity(CSSA) to implement a project titled “Improving Pastoral Communities’ Engagementin Decision making processes in Mineral Resource Governance (PACED)” fromJanuary to December 2023 in the districts of Moroto and Kaabong, KaramojaRegion, Uganda. The PACED project is a one-year project being implemented by AFLI whose goal is“to contribute to improving indigenous pastoral communities’ inclusion andengagement in decision making processes in mineral resource governance at localand national level by December 2023”. The project is designed to “To strengthen participation of indigenous pastoralcommunities in decision making in mineral resource governance and equitablebenefits sharing in mineral tractive industry in Kaabong and Moroto districts byDecember 2023
MUSEVENI WOOS JAPANESE COMPANIES TO INVEST IN VALUE ADDITION FOR UGANDAN PRODUCTS
President Museveni has received the Foreign Affairs Minister of Japan, Hayashi Yoshimasa with his delegation at State house, Entebbe. The discussion centered on how Japan can support Uganda specifically on value addition, by encouraging Japanese investors to set up in Uganda, as opposed to importing raw materials which keeps Africa and Uganda stunted despite having natural deposits capable of catapulting the economies. Museveni told the Foreign Affairs Minister that the economy of the whole of Africa is $2.7 trillion which is smaller than the GDP of Japan, Germany, and India. He said that in the case of Uganda, some of the population is still outside the money economy. “Africa is very deceptive because you can live without money as long as you eat, if it is merely survival,” he said. Museveni further informed the visiting Foreign Affairs Minister that until 2013, only 32 per cent of Ugandans were in the money economy, adding that with government interventions, they have doubled the figure but presented the government with another hurdle that those who are in the money economy are dealing in raw materials. “We are therefore undergoing what is called perennial hemorrhage and it’s responsible for Africa’s stunting due to our bankrupt planners, coupled with external parasites who manipulate, interfere politically, and work with traitors to retard Africa,” Museveni said. He urged Japanese manufacturing companies to take interest in Uganda and add value to the country’s products like coffee. Museveni further requested the Japanese Foreign Affairs Minister to get companies that can make car batteries because Uganda has got Lithium. “We are already manufacturing electric cars, but we need car batteries.” In response, the Foreign Affairs Minister reiterated their desire to strengthen the bilateral relations with Uganda. He said Japan as the G7 presidency attaches great importance to listening directly to the voice of Africa. Hayashi pledged to continue to support Uganda in the Health sector and also informed the President that Japanese companies are getting increasingly interested in Ugandan companies especially startups and assured that they will help them grow and become bigger businesses. He also pledged to look into the president’s request of getting him companies that can produce car batteries. The meeting was also attended by the Japanese Ambassador to Uganda Hidemoto Fukuzawa, Gen Jeje Odongo, Uganda’s Foreign Minister, Gen. Katumba Wamala, the Minister of works and transport and the Attorney General, Kiryowa Kiwanuka. Source; Nile Post
MPs PROBE GHOST FUEL CARDS AT TRADE MINISTRY
Staff at the Ministry of Trade, Industry and Cooperatives (MTIC) are being investigated over allegations of issuance and usage of ghost fuel cards. This follows reports that millions of taxpayers money is being diverted for usage for ghost fuel cards by unscrupulous employees within the ministry. Parliament’s Committee on Trade, Tourism and Industry chaired by Mr Mwine Mpaka (Mbarara City South) raised queries yesterday during an interface with a section of staff from the ministry. Mr Mpaka, while quoting official documents, said during Financial Year 2022/2021, Shs357 million was integrated for use on fuel cards that were attached to three staff members. “There is no staff in the ministry who can have Shs357 million on his card, even a minister cannot have that amount of fuel,” he said. Other committee members expressed shock at the allocation.But Mr Daniel Kasule, a former transport officer at the ministry, denied any mischief in the transaction. “I don’t requisition for fuel. I rely on instructions from staff. My responsibility is to do the loading,” Mr Kasule said. Mr Mpaka then revealed other transactions of fuel being misused by staff.“The senior accountant in Bukoto [on the same day at different time intervals] put fuel worth Shs62,000, Shs250,000, Shs250,000, Shs480,000, Shs400,000, from the same petro station. What kind of fuel tank is?” he wondered. Mr Daniel Mayieka, the managing director at Total Energies Marketing Uganda Limited, confirmed that it is possible to have these types of transactions.“The vehicles will come to the station and then one by one they will fuel and as they fuel, they run the card,” Mr Mayieka said. On his part, Mr Nelson Balyejusa, a senior accountant at MTIC, denied any wrong doing, and instead pinned the blame on other staff at the ministry. “It is very painful when our names are in the papers, or social media when actually we are innocent. I have never received any card in this line. I only have two cards. One was blocked,” he said. Mr Balyejusa then proceeded to state that the cards that were mentioned [during the probe] have never been in his possession, including fuel card number 63820 with Shs41 million, card 77888 with Shs68 million and card 151774 with Shs100 million. “My predecessor gave me card 162905, meaning that the card of Shs41 million is 63820 was created way before I joined the Ministry of Trade,” he said. Ms Rosemary Asiimwe, the senior assistant secretary at MTIC who previously served as a transport officer for a period of two and half months, confirmed issues of ghost cards. “I did issue fuel cards to staff who were not in possession of cards,” Ms Asiimwe said, adding: “When my predecessor was handing over office, in his handover report of fuel cards, it was surprising that my name was there Asiimwe Rosemary with a card but which I had never had [a card] in possession.” Ms Asiimwe also confirmed there were also other cases of card names with users who were not in possession of them. Mr Mpaka instructed that Ms Asiimwe, Mr Kasule and Mr Jackson Nabongho, the current transport officer at MTIC be taken to police to write statements over the fuel cards saga before being released on bond. The committee probe, which kicked off last month, is investigating, among other things, allegations of abuse of office and corruption at the Trade ministry. A number of staff have already been questioned over the several allegations rocking the ministry. The probe follows allegations of mismanagement of a supplementary budget worth Shs54 billion that was approved by Parliament for the ministry during Financial year 2021/22. Source; Daily Monitor
MPs UNDER SIEGE OVER DEBTS
Last week, the speaker of parliament, Anita Annet Among, issued a stern warning to moneylenders, threatening to cancel the Memorandums of understanding (MoU) signed between parliament and some moneylenders. Her decision came in response to reports of moneylenders harassing members of parliament (MPs) with exorbitant interest rates. Among expressed her concern over MPs frequently ending up in court due to these harsh conditions and demanded that the moneylenders behave appropriately. “I am going to cancel those MOUs between those moneylenders and parliament, because I can’t afford having MPs every time in court. They must behave,” she said. At least three legislators have faced the strict and unforgiving terms imposed by moneylenders. In previous parliaments, moneylenders signed MoUs with parliament, allowing MPs and staff members to borrow money with the assurance of repayment through the payroll. This practice was initiated by the current administration but has been observed in previous sessions as well. Presently, parliament has arrange- ments with savings and credit cooperatives (SACCOs) and various banks that offer loans to MPs. Many MPs resort to taking loans to fund their election campaigns, and once elected, they pledge their salaries to borrow more money to protect their mortgaged properties. Additionally, they often find themselves taking out new loans to service previous debts, leading to an overwhelming burden of constituency needs and financial commitments. Given their relatively low salaries, these loan obligations have put immense pressure on MPs, some of whom have been forced to seek refuge in parliament premises late into the night to avoid confrontations with angry creditors. In Uganda, moneylenders fall under the regulation of the Uganda Microfinance Regulatory Authority (UMRA), operating according to the Tier IV Microfinance Institutions and Moneylenders Act. The law governs the licensing and management of tier four microfinance institutions and money lenders. Moneylenders are regulated by Uganda Microfinance Regulatory Authority (UMRA) which derives its powers from 2016 Tier IV Microfinance Institutions and Moneylenders Act. The law provides for licensing and management of tier four microfinance institutions, licensing of money lenders and others. According to the UMRA website, the interest rate for people acquiring loans from especially moneylenders and commercial banks is open. It is at the discretion of the moneylender to decide how much interest he will charge his customers. According to the latest data published monthly by Bank of Uganda, the interest rate in Uganda remains unchanged at 10% in July 2023. The maximum level was 23% and minimum was 6.5%. The Bank of Uganda State of the Economy Report April 2023 indicates that the lending rates by the commercial banks have steadily increased to 19.2% in the three months to March 2023 from 18.4 percent in October 2022. But moneylenders insist that there is no official rate imposed on customers across the country. Moneylenders determine the interest rates at their discretion, often adjusting the rates based on the amount borrowed, negotiation skills, and the agreed repayment period. Interest rates can vary significantly, and additional interest may be charged on defaulted loans. Recent incidents have seen several MPs, including Davis Kamukama, Patrick Mutono, and Robert Mwesigwa Rukaari, arrested and taken to court for failing to repay their loans. Rukaari was charged with failure to pay a loan of Shs 700 million, while Kamukama owed Shs 69.1 million. Dr. Mutono was also remanded for defaulting on a Shs 300 million loan. These cases highlight the severe consequences MPs may face due to their financial commitments. Despite the challenges, some moneylenders argue that interest rates are determined based on borrowers’ qualifications and negotiating abilities. For instance, Unifi Uganda adjusts interest rates depending on the borrower’s qualifications, while Finca Uganda allows for different interest rates, depending on the credit officer’s decision. Source; Observer UG
MPS STUNNED BY LACK OF RULES AS GOVT PICKS FIRM TO RUN NATIONAL LOTTERY
MPs are perturbed that the government has identified a company to manage the lucrative national lottery without regulations in place. This follows the revelation by the Ag. Chief Executive Officer (CEO) of the Lotteries and Gaming Regulatory Board, Denis Ngabirano, of the successful firm (not named) that they have recommended to the finance minister. The board was responding to queries in the Auditor General’s report for the year ended June 2022 during a meeting with MPs on the Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (COSASE). Chaired by Hon. Joel Ssenyonyi, the board members that appeared on Tuesday, 01 August 2023, were to tasked explain how they procured the operator to conduct the national lottery. “We still have not sorted out issues of standards, and now there is a mega national lottery coming up. We previously had Premier Lottery and JADA which made some people rich,” said Ssenyonyi. Ngabirano said that in December 2021, the board advertised and made a call for applications to conduct the national lottery. “We received five applications which we evaluated and identified an operator who is expected to fulfill certain requirements before the minister signs the license for them,” he added. According to the Auditor General’s report, four sets of regulations had not been set up including those to handle complaints and determine disputes, as well as those to handle the disposal of unclaimed prizes. “The absence of the different regulations has resulted in an unregulated industry with risks of abuse and possible exploitation of gamblers and minors,” reads the report in part. Hon. Yusuf Nsibambi (FDC, Mawokota County South) said it is key to have regulations to manage lottery and gaming centers across the country, to ensure users are not taken advantage of. “With just guidelines per se, one cannot sue an operator. Many youths go into gambling out of naivety and as such, you must ensure control over the operators,” said Nsibambi. Board members of the Lotteries and Gaming Regulatory Board appearing before COSASE on Tuesday, 01 August 2023 The CEO cited the Lotteries and Gaming Act, 2016, which provides for a National Lottery conducted on behalf of the finance minister, with a view of raising funds for a purpose defined by the minister. According to Section 23 of the Act, “the Board shall, before recommending to the Minister to issue a license to conduct the national lottery, satisfy itself that the person is fit and proper to conduct a national lottery.” Hon. Muwada Nkunyingi (NUP, Kyadondo County East) said the finance minister ought to be summoned to the committee to give an account on the regulations. Deborah Kituyi, the Head of Legal Affairs at the National Lotteries and Gaming Regulatory Board, said they have advised the minister through recommendations, to have the pending regulations enforced. “The finance ministry forwarded them to the Ministry of Justice and Constitutional Affairs for legislative drafting. I am confident that probably by the end of this quarter, we will have these regulations in force,” Kituyi said. The board has been given until Wednesday, 02 August 2023 to respond to the queries raised in the Auditor General’s report. Source; Parliament
MP WINS HOUSE APPROVAL TO INTRODUCE ANTI-COUNTERFEITING BILL
The House has granted leave to Bugiri Municipality Member of Parliament, Hon. Asuman Basalirwa, to introduce a Private Member’s Bill entitled, “The Anti-Counterfeiting Bill, 2023”. The leave was granted after extensive debate during the plenary on Thursday, 27 July 2023 chaired by Speaker Anita Among. The proposed Bill will prohibit trade in counterfeit goods that infringe upon protected intellectual property rights and require intellectual property rights to cover only copyright and trademarks and to prohibit the sale of counterfeit goods. It will also create offenses relating to trade in counterfeit goods, empower the Commissioner General of the Uganda Revenue Authority to confiscate suspected counterfeit goods and allow inspectors appointed by the Uganda National Bureau of Standards to do the same. While justifying his motion, Basalirwa also explained that the current enforcement mechanisms provided under intellectual property laws only provide recourse to court in case of infringement and do not provide administrative remedies that can be accessed through national intellectual property agencies. He further established the proliferation of counterfeit and pirated goods and services that are distributed undermines legitimate trade, causes significant financial losses for right holders and legitimate businesses, and, in some cases, provide a source of revenue for organized crime. Additionally, the lack of effective enforcement mechanisms for intellectual property rights holders has negatively affected the exploitation of intellectual property rights and reversed the gains made by Uganda in the registration, creation, and exploitation of intellectual property rights. “The lack of effective enforcement mechanisms for intellectual property rights has deterred Uganda’s response to new and evolving threats posed by counterfeit products manufactured within and outside the country,” Basalirwa said. Hon. Jonathan Ebwalu, the Soroti City West Division legislator, and Hon. Derrick Orone of Gogonyo County seconded the motion. However, Government Chief, Hon. Denis Hamson Obua, expressed reservations stating that the Government had not yet scrutinized the Bill. The Bill was first introduced in 2015 but Cabinet withdrew it on grounds that there were other laws that address counterfeiting goods. The various laws that the Government cited to regulate the registration and exploitation of intellectual property assets include; the Copyright and Neighbouring Rights Act, 2006, the Trade Secrets Protection Act, 2009, the Trademarks Act, 20l0, the Geographical Indications, Act, 2013, the Industrial Property Act, 2014, and the Plant Variety and Protection Act, 2014. Source; Parliament of Uganda